FEDERAL WAY, Wa. - Weyerhaeuser sold its iconic headquarters campus in Federal Way, Washington for $70.5 million as it prepares to move to Seattle. Its research labs will remain on the campus, leasing from the new owners, Industrial Realty Group.
Weyerhaeuser completed a merger with Plum Creek Timber Company, Inc. last week. Shareholders of both companies approved the transaction at separate special meetings of shareholders on Feb. 12, 2016. The combined company retains the Weyerhaeuser name and continues to be traded under the WY ticker symbol on the New York Stock Exchange.
The combined company owns more than 13 million acres of diverse and productive timberlands and operates 38 wood products manufacturing facilities across the country.
In the sale of Weyerhaeuser headquarters, Columbia Pacific Advisors provided the $50 million first mortgage. The Seattle real estate lender’s loan enabled Industrial Realty Group, LLC (IRG), a nationwide real estate development and investment firm, to buy the 425-acre corporate campus. IRG plans to redevelop and lease or sell parts of the high-profile property primarily for industrial and office use.
The $50 million loan to IRG for the Weyerhaeuser property was completed on a condensed schedule. “Closing loans quickly and efficiently is standard practice for Columbia Pacific,” said Brad Shain, Managing Director of the firm’s real estate lending strategy.
“We are fully capitalized, which allows us to be flexible on the deal structure and timeline,” Shain said.
With deep experience in redeveloping corporate campuses, IRG was eager to buy the Weyerhaeuser property for its architecture, size, and location and was able to do so with the participation of Columbia Pacific Advisors.
“Columbia Pacific’s real estate lending strategy was a critical player in the transaction,” said Tom Messmer, Senior Vice President of IRG. “They worked with us to get us the financing we needed in an expedient and comprehensive manner. We couldn’t have asked for a better lender.”
Mesa West Capital, which is partially owned by Columbia Pacific Advisors, was involved in the origination of the financing and is expected to be involved in the ongoing asset management of the loan.
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